Until the end of March 2012, Friends First are offering a TWO MONTH CASH BACK OFFER on both Term Assurance and Mortgage Protection policies.

Every customer who submits a FriendsFirst protection application between January 30th and March 31st 2012 willget their first two months’ payments back, or €50, whichever is bigger, as long as the case has been accepted and issued by April 27th.

Friends First will issue the cash backpayment on Friday June 29th 2012

So Friends Friends have just copied New Ireland who had copied Irish Life. It’s all about protecting market share these days.

If you are thinking of switching cover, you might as well take advantage of the current “price war”.

Filed under: Blog, Life insurance by Nick McGowan
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Do you trust life insurance companies?

Picture this:

You pay €50 next month for your life insurance premium, then €50 the following month. €100 in total.

At the beginning of the third month, the insurance company will give you back your €100.

Sounds too good to be true? Well it’s not.

This is exactly what Irish Life are offering if you take a policy out with them by the end of April.

So why should you be wary of such a gift? Well for the simple reason that you can get a better deal elsewhere.

Take a look at online life insurance brokers who will give you around 75% of your first years premium back.

So you could get €100 back from Irish Life or €450 back from an online broker for the same policy.

Don’t believe the hype.

Filed under: Blog by Nick McGowan
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In Budget 2012 a special rate of 30% for the tax years 2012 to 2017 was introduced for first-time buyers who took out mortgages in the boom years of 2004 to 2008.

This sounds great and first time buyers (FTB)  should be happy but remember you are only a FTB  for the first 7 years after you buy so the relief may not be as valuable as you think.

Let me explain.

Single First time Buyer:

You bought in 2006. You will be classed as a first time buyer from 2006-2012 only. Why is this important?

For the first 7 years as a first time buyer you are entitled to relief on the first €10,000 interest payable on your mortgage. After 7 years you will be classed as a non first time buyer and will get relief on the first €3,000 only.

The new rule entitles you to 30% relief from 2012 to 2017.

Remember you are only classed as a first time buyer until 2013.

Therefore

• 2012 : 30% of first €10,000 (€3000)
• 2013-2017 : Now a non first time buyer so you are entitled to 30% of €3,000 (€900)

An example should make it easier to understand:

Mortgage of €300,000. Interest rate of 4%. Interest payable = €12,000

• 2012 : Tax relief  = 30% x €10,0000 (max) =  €3000
• 2013 – 2017: Tax relief  = 30% x €3,000 (max) =  €900

Married First time Buyer:

You bought in 2008. You will be classed as a first time buyer from 2008-2014 only. Why is this important?

For the first 7 years as a first time buyer you are entitled to relief on the first €20,000 interest payable on your mortgage. After 7 years you will be classed as a non first time buyer and will get relief on the first €6,000 only.

The new rule entitles you to 30% relief from 2012 to 2017.

Remember you are only classed as a first time buyer until 2015.

Therefore

• 2012 : 30% of first €20,000 (€6000)
• 2013 : 30% of first €20,000 (€6000)
• 2014 : 30% of first €20,000 (€6000)
• 2015-2017 : Now a non first time buyer so you are entitled to 30% of €6,000 (€1800)

Mortgage of €300,000. Interest rate of 4%. Interest payable = €12,000

• 2012, 2013, 2014 : Tax relief  = 30% x €12,000 (max) =  €3600
• 2015 – 2017: Tax relief  = 30% x €6,000 (max) =  € 1800

Filed under: Blog by Nick McGowan
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